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State Leaders Shrug Off Recent Revenue Shortfalls

State leaders are shrugging off concerns about recent tax revenue shortfalls, particularly with corporate tax collections. They say the underwhelming revenues are a result of explainable outside forces.

Total state tax revenues are about $150 million off the mark through five months of the fiscal year. That’s almost entirely attributable to corporate tax collections, which have only raised about a third of what was projected.

But House Speaker Brian Bosma (R-Indianapolis) says that’s largely due to what he calls corporate tax planning.

“Talked to some corporate leaders that have indicated that they’re postponing – properly postponing – revenues until after the first of the year with the hope that the federal government gets its act together and gives us a dramatic tax cut at the corporate level,” Bosma says.

Corporate entities have also received more than double the number of refunds so far this year compared to last year.

The Indiana Democratic Party blames the shortfall on ongoing cuts to the state’s corporate tax rate.

State fiscal leaders will receive a new revenue forecast December 18.

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